Market watch

Google's downbeat results could pressure tech stocks

A downbeat quarterly report by Google late Thursday, following a weak report by Yahoo earlier in the week, could add pressure on technology stocks when trading opens Friday.

Google posted higher profits but said the cost of acquiring traffic to its site had increased. Revenues were less than analysts had expected. Shares dropped more than 5 percent in late trading.

In the regular session, stocks advanced after bond insurer MBIA defended its financial soundness in a conference call with analysts. Investors grew optimistic that the aggressive interest rate cuts by the Federal Reserve since September would energize the 2008 economy and boost corporate profits.

In particular, bargain-hunters continued to buy shares of major home builders. Pulte Homes jumped $2.78, or more than 20 percent, to $16.35, after the company said it was reducing its land purchases.

The Dow Jones industrial average closed up 207.53 points, at 12,650.36. Caterpillar, McDonald's and American Express were the biggest contributors to the Dow's gain.

Only Altria Group and Merck, two of the Dow's so-called defensive stocks, closed lower.

Treasury securities advanced after the latest weekly report on initial claims for unemployment compensation rose more than expected, fueling worries that Friday's Labor Department report on job growth in January will show a weak labor market.